Kimteks Poliuretan Sanayi Ve Ticaret As · BIST:KMPUR
Kimteks Poliuretan Sanayi Ve Ticaret As — FY2023 Earnings Presentation
48 slides from Kimteks Poliuretan Sanayi Ve Ticaret As's earnings presentation, April 2024
Slide 1: Kimteks Polyurethane System House: Uncommon Solutions
KİMTEKS POLYURETHANE SYSTEM HOUSE UNCOMMON SOLUTIONS
Slide 2: Business Results for 2023 Investor Presentation
KİMTEKS POLİÜRETAN SANAYİ VE TİCARET A.Ş. AND AFFILIATES BUSINESS RESULTS FOR 2023 INVESTOR PRESENTATION APRIL 2024 www.kimpur.com
Slide 3: Production Facilities and Head Office
Gebze Production Facility Europe Production Facility Düzce Production Facility Head Office
Slide 4: Overview
1 Overview
Slide 5: Why Kimpur?
WHY KIMPUR? OUR VISION To be a company followed in the world with innovative products and extraordinary solutions in polyurethane systems. ▪ Türkiye’s first domestic-capital polyurethane systems producer, blending agile & lean management with understanding “Advanced Technology” systems based on “Sma
Slide 6: Extraordinary Solutions in Every Area of Life
EXTRAORDINARY SOLUTIONS IN EVERY AREA OF LIFE Wide Product Range Footwear Systems Rigid Foam Systems Flexible Foam Systems Special Products Polyester Polyols Auxiliary Materials Special Components More than 600 Raw Materials Systems
Slide 7: Sectors
SECTORS Income Diversity FOOTWEAR FURNITURE AND SECTOR FOAM SECTOR AUTOMOTIVE HEATING AND SECTOR COOLING SECTOR BUILDING AND RAW INSULATION SECTOR MATERIALS INNOVATIVE, SUSTAINABLE AND EXTRAORDINARY SOLUTIONS
Slide 8: Kimpur: More Than 40 Years of Success
KİMPUR: MORE THAN 40 YEARS O F SUCCESS Kimpur Public Offering Gebze Factory SPP Plant Düzce Facility Foundation Laying and Construction Establishment of Kimteks R&D Center Certificate 72 kT Kimya Moving to Gebze Sales Volume Production Facility Additional Production Start of Flexible Colla
Slide 9: Our Global Activities
Global OUR GLOBAL ACTIVITIES Profitable Growth Production Facility Kimpur UK Limited Gebze Production Facility EXPORT TO MORE THAN Düzce Production Facility 50 COUNTRIES ON 5 CONTINENTS Gaziantep Warehouse
Slide 10: At a Glance with Figures
AT A GLANCE WITH FIGURES 40 196 kton 35 kton 10 EXPORT TO 306 27% 600+ YEARS OF PRODUCTION CAPACITY DÜZCE ONGOING INVESTMENT VISION OF BECOMING 50+ EMPLOYEES İHRACAT / PRODUCT ONE OF THE 10 COUNTRIES EXPERIENCE (32 R&D) DIVERSITY • 141 kton Gebze • 20 kton PU GREATEST GLOBAL TOTAL PLAYERS WITH A TO
Slide 11: Supply Chain & Logistics Management
SUPPLY CHAIN & LOGISTICS MANAGEMENT ▪ Türkiye’s largest purchasing volume in the sector ▪ ~90% import rate in production inputs Kimpur Logistics Storage Network ▪ Producers of Europe and Far East origin in the supply of raw materials ▪ In line with the SAP & MRP studies launched in 2019, proactive
Slide 12: Our Strategic Priorities
2 Our Strategic Priorities
Slide 13: Featured Investment Elements
FEATURED INVESTMENT ELEMENTS Reliable Solution Partnership R&D Center & Innovative Applications Guiding the Sector Strong Domestic & Export Growth Strategy with Wide Product Range Our Strategic Projects Environmental and Social Sustainability Sustainable Expansion Policies Strong Financial Perform
Slide 14: Reliable Solution Partnership
i.Reliable Solution Partnership
Slide 15: Reliable Solution Partnership
RELIABLE SOLUTION PARTNERSHIP Product Management Human Supply Chain Management ▪ Brand Awareness Resources ▪ Competitive Product Delivery Time ▪ Customer Loyalty ▪ Global and Agile Organizational ▪ Strong Supplier Relations ▪ Sectoral Diversity Structure ▪ Wide Product Range ▪ Sectoral-based High Pu
Slide 16: R&D Center and Innovative Applications Guiding the Sector
ii.R&D Center and Innovative Applications Guiding the Sector
Slide 17: Kimpur R&D Center
KİMPUR R&D CENTER Innovation Responding to consumer needs with science, our R&D team supports Kimpur’s innovation projects. Kimpur R&D Center Project is supported by the Ministry of Science, Industry and Technology Center R&D R&D 250 250 COMPANIES R&D OF TÜRKİYE INNOVATIVE INNOVATIVE INNOVATIVE INVE
Slide 18: Pioneering in the Sector with Its R&D Center
PIONEERING IN THE SECTOR WITH ITS R&D CENTER 19 Registered Trademarks Kimpur Türkiye’s Polyurethane R&D Power With companies and universities leading in their fields, Participation in European Union and SAYEM Projects Among Türkiye’s 250 Companies with the Highest R&D on Bio, Recycling and Sustain
Slide 19: Strong Domestic & Export Growth Strategy with Wide Product Range
iii.Strong Domestic & Export Growth Strategy with Wide Product Range
Slide 20: Global Polyurethane Market
GLOBAL POLYURETHANE MARKET Global Polyurethane Market Volume Factors/Trends Affecting Global Market Volume ✓ Polyurethane’s becoming an important part of many sectors in the world thanks to its versatile use ✓ Increase of demand for light, durable and high-performance products in many fields from th
Slide 21: Türkiye's Polyurethane Production Market
TÜRKİYE’S POLY PRODUCTION MARKET DOMESTIC PU CAPACITY 2018 2019 2020 2021 2022 2023 T Rigid 215,490 215,420 207,110 216,210 223,980 240,000 Flexible 149,130 143,800 138,100 144,890 149,980 147,000 Elastomers 101,105 110,822 119,665 126,284 130,519 128,000 Coatings 62,590 63,290 62,200 64,709 66,5
Slide 22: Strong Positioning in Different Sectors with Income Diversity
STRONG POSITIONING IN DIFFERENT SECTORS WITH INCOME DIVERSITY DISTRIBUTION OF 2023 SALES Domes Export tic 0% 15% 1% 2% 3% 13% 1% 1% 24% 39% 4% 5% 53% 39% Footwear Polyester Raw material Other ✓ +79% increase compared to 2022 in the panel sector for production of earthquake containers; additional
Slide 23: Kimpur Product Groups
KİMPUR PRODUCT GROUPS Sales Breakdown of Product Groups by Years, Quantitative (%) 1.1% 1.1% 0.2% 0.8% 1.5% 1.7% 2.2% 1.1% 3.0% 1.5% 2.9% 1.7% 7.8% 5.5% 5.4% 4.6% 3.3% 6.8% 7.8% 12.5% 41.3% 36.8% 37.4% 28.4% 46.4% 44.7% 49.1% 43.3% 2020 2021 2022 2023 Rigid Footwear Raw Flexible Polyester Case Other
Slide 24: Rigid Foam Systems
RIGID FOAM SYSTEMS Rigid Foam Systems Sales Quantity (Tons) 69,665 Rigid Foam Systems 58,177 ▪ Double-component rigid foam systems for insulation purposes for the insulation panel and White Goods 46,784 sectors 40,923 • The first component is the physical mixtures of 31,497 polyether polyols, catal
Slide 25: Shoe and Slipper Systems
SHOE AND SLIPPER SYSTEMS Footwear Systems Sales Quantity (Tons) Footwear Systems 46,011 39,122 40,305 ▪ Expanded micro-cellular foams in both ester and ether form for all types 32,429 of shoe soles, from occupational safety to sports and casual products 30,101 ▪ KIMfoot® are 3-component Polyester sy
Slide 26: Flexible Foam Systems
FLEXIBLE FOAM SYSTEMS Flexible Foam Systems Sales Quantity (Tons) Flexible Foam Systems 9,150 ▪ MDI-based KIMflex® Flexible Foam Systems produced by Kimpur are classified as: ▪ HR sponge systems, 6,568 ▪ Viscoelastic systems, 5,690 5,660 ▪ Integral systems 4,890 ▪ Filter systems. ▪ Systems for produ
Slide 27: Special Products
SPECIAL PRODUCTS Special Products Sales Quantity (Tons) Special Products 4,656 ▪ Polyurethane Systems for elastomeric applications in expanded foams and non-foamy structures. ▪ Reaction Injection Molding (RIM), Micro-cellular Structural Foam RIM, SRIM (Structural RIM Composites) and low-density RRIM
Slide 28: Polyester Polyols
POLYESTER POLYOLS Polyester Polyols Sales Quantity (Tons) Polyester Polyols 4,274 4,079 ▪ It produces KIMpol® Polyester Polyols, which consist of multifunctional carboxylic acid and polyhydric alcohol combinations with various functions, 3,179 to offer the best solutions to industries such as the fo
Slide 29: Raw Materials
RAW MATERIALS Raw Material Sales Quantity (Tons) Raw material ▪ The raw materials supplied by Kimpur are collected under the KIMraw® product group and are used in many different fields such as 17,810 plasticizers, adhesives, construction chemicals and paint, especially polyurethane systems. 8,159 6,
Slide 30: Strong Export Growth Strategy (Export to 50+ Countries)
STRONG EXPORT GROWTH STRATEGY (EXPORT TO 50+ COUNTRIES) EXPORT TO MORE THAN 50 Production COUNTRIES ON 5 CONTINENTS Facility Kimpur UK Limited Gebze Production Facility Düzce Production Facility Gaziantep Warehouse
Slide 31: Strong Export Strategy
STRONG EXPORT STRATEGY Share of Exports in Total Sales COUNTRY GROUPS (tons) 2021 2021 % 2022 2022 % 2023 2023 % 60% (ton %) CIS Countries 3,250 13.8% 10,870 32.8% 9,292 23.9% 50% African Countries 6,208 26.4% 6,536 19.7% 9,201 23.7% 40% 32% Middle East and Gulf 10,781 45.9% 10,122 30.5% 7,632 19.7%
Slide 32: Environmental & Social Sustainability
iv.Environmental & Social Sustainability
Slide 33: For a Sustainable Future We Create Values!
SUSTAINABLE FUTURE WITH KİMPUR Sustainability For A Sustainable Future OUR JOURNEY OF VALUE WE ADD OUR JOURNEY OF VALUE WE ADD OUR JOURNEY OF VALUE WE ADD We Create Values! TO OUR NATURE TO OUR LIFE TO OUR BUSINESS Our As Kimpur, we believe that sustainable growth is not possible Our Social Our Envi
Slide 34: Sustainability in Kimpur
SUSTAINABILITY IN KİMPUR Sustainability OUR JOURNEY OF VALUE WE ADD TO OUR NATURE OUR JOURNEY OF VALUE WE ADD TO OUR LIFE Environment-Friendly Production Facilities Kimpur Code of Ethical Business Conduct In Our Gebze Production Facility; Honesty -~20% Renewable Energy Target with SPP Plant Respect
Slide 35: Our Sustainable Product Portfolio
OUR SUSTAINABLE PRODUCT PORTFOLIO Sustainability Polyester Polyol Synthesis from PET Graphene-based Sound Insulation and HR Bottle Wastes Foam Systems Obtained from Automotive Tire Wastes Eco-friendly slippers raw material production without compromise on its physical and mechanical properties Syste
Slide 36: Our Completed Projects
OUR COMPLETED PROJECTS ➢ Energy Savings of 11.6% in 2020 - 7.1% in 2021 ➢ Approximately 20% clean energy and 200-250 tons/year carbon emission reduction with SPP plant investment in Gebze ➢ Approximately 55% clean energy and 679 tons of carbon dioxide emission reduction target with SPP plant investm
Slide 37: Our Ongoing Projects
OUR ONGOING PROJECTS ➢ Studies of special system ensuring energy saving (2%) ➢ Recycling polyurethane wastes in refrigerator systems and ensuring its reuse in rigid polyurethane systems ➢ Completion of 30% bio-based system in refrigerator ➢ Recycling footwear wastes and ensuring its use in footwear
Slide 38: Sustainable Expansion / Düzce Investment
SUSTAINABLE EXPANSION / DÜZCE INVESTMENT March 2022: Production factory investment Construction Commencement on a land of 17,015 m2 land in Date: Gümüşova OIZ End of April 2023: Construction Completion Date Investment size of 15 Kimpur Düzce Factory July 2023: million USD Investment Phase 1 Producti
Slide 39: Strong Financial Performance
v. Strong Financial Performance (2023 - Critical Financial Indicators)
Slide 40: 2023: Increased Exports & Stable Growth
2023: INCREASED EXPORTS & STABLE GROWTH TAS 29 Inflation Accounting TAS 29 Inflation Accounting Included Excluded 10,632.1 8,128.9 9,367.1 2,906.8 2,222.4 2,716.5 4,890.0 1,594.1 5,906.4 7,725.3 6,650.7 3,295.9 2022 2023 2022 (TAS 29) 2023 (TAS 29) Domestic Export Total Domestic Export* Total Sales
Slide 41: 2023: Operational Profitability at a Record Level (TAS 29)
2023: OPERATIONAL PROFITABILITY AT A RECORD LEVEL (Results Adjusted According to Inflation Accounting (TAS 29)) Gross Profit (Million TL) EBITDA (Million TL) 17.0% 16.2% 14.7% 14.0% 1,721.4 1,794.7 1,313.3 1,374.9 2022 2023 2022 2023 Net Profit (Million TL) 5.7% 4.5% ‘22 vs ‘23 Net Profit: ▪ 2023 ad
Slide 42: 2023: Operational Profitability at a Record Level (Before TAS 29)
2023: OPERATIONAL PROFITABILITY AT A RECORD LEVEL (Results Before Inflation Accounting (TAS 29)) Gross Profit (Million TL) EBITDA (Million TL) 19.1% 15.5% 17.0% 15.7% 1,551.5 1,381.6 768.7 759.2 2022 2023 2022 2023 Net Profit (Million TL) 13.5% 12.2% ‘22 vs ‘23 Net Profit: ▪ 2023 additional tax expe
Slide 43: Strict Balance Sheet Management & Healthy Indebtedness Ratios (TAS 29)
STRICT BALANCE SHEET MANAGEMENT & HEALTHY FINANCIAL INDEBTEDNESS RATIOS (Results Adjusted According to Inflation Accounting (TAS 29)) Net Financial Debts (Million TL) Net Operating Capital (Million TL) 0.70 0.43 27.6% 957 24.4% 742 1,721 2,587 2,595 1,375 2022 2023 2022 2023 Net Operating Capital Ne
Slide 44: Strict Balance Sheet Management & Healthy Indebtedness Ratios (Before TAS 29)
STRICT BALANCE SHEET MANAGEMENT & HEALTHY FINANCIAL INDEBTEDNESS RATIOS (Results Before Inflation Accounting (TAS 29)) Net Financial Debts (Million TL) Net Operating Capital (Million TL) 0.77 0.571,382 31.4% 31.2% 759 787 2,538 581 1,538 2022 2023 2022 2023 Net F.Debt EBITDA Net F.Debt / Net Operati
Slide 45: Financial Priorities
FINANCIAL PRIORITIES ▪ Sustainable profitability growth ▪ Strict balance sheet & operating capital management ▪ Positive Free Cash Flow priority ▪ Proactive exchange rate risk management ▪ Effective financial debt management ▪ Maximum dividend yield
Slide 46: 2024 Expectations & Opportunities
2024 EXPECTATIONS & OPPORTUNITIES ▪ Global manufacturers’ switching from system production to raw material provider position, developing opportunities in parallel to this ▪ Successful representation at the 2024 UTECH Europe fair, important connections; Kimpur in the same league with global players!
Slide 47: Reservation
RESERVATION Pursuant to the decision of the Capital Markets Board (CMB) no. 81/1820 dated 28.12.2023, issuers and capital market institutions subject to the financial reporting regulations of the CMB, which implements Turkish Accounting/Financial Reporting Standards, it was decided to apply inflatio
Slide 48: Contact
▪ CEO: Cavidan Karaca cavidan.karaca@kimpur.com ▪ CFO: Zafer Demirel zafer.demirel@kimpur.com ▪ IR: Damla Mermeroglu damla.mermeroglu@kimpur.com investorrelations@kimpur.com Kimpur UK Head Office Düzce Factory Kimpur Europe Gebze Factory Building 3 North London Business Park, Saray Mah. Dr. Adnan
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